9911796707
TMI Blog2025 (2) TMI 229X X X X Extracts X X X X X X X X Extracts X X X X ..... transferred to other bank accounts which in generally large with abnormal pattern and having no business rationale. AO had not made efforts to give that detail of the companies through which the assessee has received the alleged sum, the nature of transaction whether such transaction has already been declared in the audited balance sheet filed by the assessee. There is also no proper reason to believe which could show that the income has escaped assessment. It is a clear case of borrowed satisfaction and the reopening is carried out without any tangible material in the possession of the AO. The case of the assessee has been opened after four years and there is no observation of the AO that the assessee had failed to disclose the relevant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xus between the information received and belief formed, secondly, on the merits of the case that the sum of Rs. 10.00 lakh received during the year was through banking channel and the same was utilised for purchasing Equity Shares and thus the transaction is genuine and addition made as unexplained cash credit u/s. 68 of the Act is uncalled for. 3. Facts of the case in brief are that the assessee is a Private Limited company engaged in the business for the A.Y. 2010-11. Ld. AO received information through Investigation Wing wherein about some accommodation entry received by the assessee from M/s. Canary Tradecom Pvt. Ltd. which is alleged to be a Jama Kharchi Company. The reassessment proceedings were carried out after issuance of notice u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing u/s. 148 of the I.T.Act 1961 in the case of Shroff Properties (Pvt.) Ltd. for Asstt. Yr. 2010-11 (PAN: AANCS3422Q). An information received from Credible sources that 31 bank accounts were opened with Indusind bank, stock Exchange Branch kolkata in the Individual, properitorship, firm and Private limited wherein it it was observed that the huge cash were being deposited in these accounts followed by immediate transfer in other bank accounts and the transaction parties were companies unusually large with abnormal pattern and carried no business rational, During the investigation it as found that huge cash was deposited in various accounts of business concerns and in many other bank accounts in Indusind Bank stock exchange Branch, Kolka ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en declared in the audited balance sheet filed by the assessee. There is also no proper reason to believe which could show that the income has escaped assessment to the tune of Rs. 10.00 lakh. It is a clear case of borrowed satisfaction and the reopening is carried out without any tangible material in the possession of the AO. The case of the assessee has been opened after four years and there is no observation of the AO that the assessee had failed to disclose the relevant material information in its regular return of income. It is also noticed that the assessee has filed the detail of the company through which it received the alleged Share Application money and the same has been returned on the same day for entering into another transacti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... "S.V.Electricals Ltd" had been submitted during the regular assessment proceedings. The objections primarily proceeds on the basis, that the reasons as recorded, display total non-application of mind while forming reason to believe, this as during the relevant time, there was no company by the name "M/s Nivyah Infrastructure and Telecom Services Ltd" in which the petitioner could have dealt. The petitioner's objections were rejected by the Assessing Officer by passing an order on 28.9.2018. The order on objections, does not deal with the petitioner's primary contentions that the petitioner had not dealt with any company by name "M/s Nivyah Infrastructure and Telecom Services Ltd" during the period rele ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the petitioner had dealt with the same leading to escapement of income. On receipt of information, the least that is expected of the Assessing Officer is to examine the same in the context of the facts of this case and satisfy himself whether the information received does prima facie lead to a reasonable belief that income chargeable to tax has escaped assessment. In this case, the reasons indicate that the Assessing Officer has not carried out such exercise and accepted the report of the Deputy Collector of Income Tax (Investigation) Mumbai to conclude that the petitioner had dealt with Nivyah Infrastructure and Telecom Services Ltd during the previous year relevant to the assessment year 2011-12. Admittedly, there was no company by n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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